New Overtime Rules to be Proposed as Early as This Week

President Obama has announced that a soon to be released proposed rule from the U.S. Department of Labor will include an increase in the minimum salary necessary for an employee to qualify as an exempt employee. Under the proposal announced by @POTUS today, by 2016, employers will have to pay exempt employees a minimum or $921 per week ($47,892 annually) and the salary will be linked the 40th percentile of income thereby increasing automatically over time. The change is expected to increase the number of employees eligible for overtime by 5 million workers.

The DOL’s proposed rule, to be released as early as this week, will likely include additional proposed revisions making fewer employees qualify as exempt and requiring overtime for more employees. Stay tuned for more updates.

About the Author

Russell Cawyer is a partner representing Texas employers in Kelly Hart & Hallman’s labor and employment practice group practicing out of the firm’s Fort Worth, Texas office. He has been board certified in labor and employment law by the Texas Board of Legal Specialization for nearly 20 years.

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